This article explains how to pay a freelancer based abroad on Malt and what VAT rules apply depending on your situation.
In summary:
- Card or transfer payments are only authorised to certain countries (Mangopay).
- VAT depends on the freelancer's country of registration and your intra-community VAT numbers.
- Online banks such as Payoneer or Qonto can be used from abroad.
How do I pay a freelancer based abroad?
If you want to collaborate with a freelancer based or registered in another country, this is possible under certain conditions. To comply with anti-fraud and anti-money laundering regulations, our payment provider Mangopay only authorises card or transfer payments to and from certain countries.
However, you can use online banks such as Payoneer or Qonto from abroad.
How does VAT apply with a freelancer abroad?
When a freelancer sends you a quote, you may be subject to several rules regarding the taxes you owe. Several cases are possible:
- The freelancer is registered in the same country as you: you will need to pay all taxes applicable to their legal form, including VAT.
- The freelancer is not registered in the same country as you, but is in the European Union:
- If you both have an intra-community VAT number, you benefit from VAT reverse charge and will not be subject to VAT payment on the service invoice.
- If the freelancer does not have an intra-community VAT number, you will be subject to VAT payment corresponding to the freelancer's legal form.
- The freelancer is not in the same country as you and is not in the European Union: no tax is applied to the quote; VAT will be 0%.
Which countries are not authorised for payments?
Card or transfer payments are not authorised to the countries listed below:
| Europe | Africa | America | Asia | Ocenia and Middle east |
|---|---|---|---|---|
| Bosnia and Herzegovina - BA | Burundi - BI | Bahamas (the) - BS | Azerbaijan - AZ | Afghanistan - AF |
| Bouvet Island - BV | Botswana - BW | Cuba - CU | China - CN | Netherlands Antilles - AN |
| Belarus - BY | Congo (the Democratic Republic of the) - CD | South Georgia and the South Sandwich Islands - GS | Kyrgyzstan - KG | Iraq - IQ |
| Yugoslavia - YU | Central African Republic (the) - CF | Gyuana - GU | Cambodia - KH | Iran (Islamic Republic of) - IR |
| Russia - RU | Ivory Coast - CI | Haiti - HT | Korea (the Democratic People's Republic of) | Lebanon - LB |
| Eritrea - ER | Trinidad and Tobago - TT | Kazakhstan - KZ | Palestine, State of - PS | |
| Ethiopia - ET | Venezuela (Bolivarian Republic of) - VE | Lao People's Democratic Republic (the) -LA | Syrian Arab Republic (the) -SY | |
| Ghana - GH | Saint Lucia (specific) - WL | Sri Lanka - LK | Yemen - YE | |
| Guinea - GN | Fiji - FJ | Myanmar - MM | ||
| Liberia - LR | Heard Island and McDonald Islands - HM | Pakistan - PK | ||
| Libya - LY | Vanuatu - VU | Russian Federation (the) - RU | ||
| Mali - ML | Tajikistan - TJ | |||
| Rwanda - RW | Turkmenistan - TM | |||
| Sudan (the)-SD | Ukraine - AU | |||
| Somalia - SO | Uzbekistan - UZ | |||
| South Sudan - SS | ||||
| Uganda - UG | ||||
| Zimbabwe - ZW |